Africa Internet & B2C E-Commerce Report 2012

Abstract

1.) South Africa and Nigeria with highest Online Shopping Potential in Africa

The new "Africa Internet & B2C E-Commerce Report 2012" by Hamburg-based
secondary market research firm yStats.com takes a close look at Internet use
and B2C E-Commerce development on the African continent. In addition to
presenting data on Internet and B2C E-Commerce for the entire continent, facts
and figures about 15 individual countries of the African continent are
compiled.

With more than 40 million users, Nigeria was the African nation with the
highest number of Internet users in December 2011, followed by Egypt and
Morocco. Meanwhile, Internet penetration was the highest in Morocco with
almost 50%. South Africa on the other hand, was the country with the most
successful B2C E-Commerce platforms. In 2011, various factors still curbed
online retail on the entire continent, such as the low Internet penetration
and the focus on cash transactions and personal relationships. Recently,
however, mobile payment methods have become increasingly popular, promoting
B2C E-Commerce growth in 2012.

Growing B2C E-Commerce revenue in the most important African markets In South
Africa, the share of online shoppers on the total number of Internet users has
continued to grow slowly between 2009 and 2011. In 2011, a clear majority
cited lower prices as a decisive factor for making purchases online. Kenya was
the fastest growing Internet market in Africa in 2011, due to low mobile phone
charges and increasing broadband capacity. The number of Internet users and
their share on the entire population continuously grew between 2010 and 2011
by a low double digit percentage figure. At the same time, the number of
Internet connections and B2C E-Commerce revenue in Morocco grew between 2010
and 2011 by almost three quarters. Due to improved Internet access and a
growing number of online shops, the number of credit cards also increased in
2011. Furthermore, according to forecasts at least one third of the population
in Nigeria is expected to have direct Internet access by 2013. Although large
online retailers such as Amazon, eBay and South African online shop Kalahari
sell their products there, there are still limitations when it comes to
shipping and payment options.

Great potential in other African markets In February 2012, almost one quarter
of all Internet users in Egypt shopped online or used the Internet to pay
their bills. Meanwhile, Algeria with its lower Internet user rate saw only
little online retail in early 2012, because cash transactions were still
predominant there, while other payment options were hardly available. The
increasing number of Internet users in Uganda is expected to spur the use of
services such as online shopping and online banking in 2012. In Ghana, B2C
E-Commerce was curbed by the low Internet penetration rate and a lack of
suitable shipping and payment options. According to the "Africa Internet & B2C
E-Commerce Report 2012" by yStats.com, in 2011, especially in Libya people
were afraid of B2C E-Commerce related scams. Meanwhile, more than half of all
Internet users in Namibia accessed the Internet via mobile phone, much like in
Tanzania. Conclusively, it can be stated Africa is making slow but steady
progress in terms of Internet usage and B2C E-Commerce.

2.) KEY FINDINGS

With more than 40 million users, Nigeria was the African nation with the
highest number of Internet users in December 2011, followed by Egypt and
Morocco.

In South Africa, the share of online shoppers on Internet users has
continued to grow strongly until 2011. Lower prices were a decisive factor for
the B2C E-Commerce development.

Kenya showed strong growth potential, as it was the fastest growing
Internet market in Africa in 2011, due to low mobile phone charges and
increasing broadband capacity.

In Morocco, the number of Internet connections as well as B2C E-Commerce
revenues grew strongly between 2010 and 2011.

In Nigeria, at least one third of the population is expected to have
direct Internet access by 2013.

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Table of Contents

1. Management Summary

2. Africa: Regional

Global and African GDP, in USD billion and African Share of Global GDP, in
%, 2012f-2030f

GDP Growth Rates in Africa and other major Regions and Economies of the
World, in %, 2011-2013f